Bajaj Finance share price sinks 6% on MSME stress despite strong Q1 numbers

Market Performance

• At 9:18 am on Friday, July 25, 2025, the Bajaj Finance share price was ₹901.8, down 6% on the NSE.
• The fall came right after the company posted its Q1FY26 (quarter ended June 30, 2025) results.

Main News

India’s leading NBFC reported double‑digit growth across key profit and income lines, but the Street focused on the higher credit costs in the MSME and 2W/3W portfolios. Stress in the MSME book has been visible since February 2025, the company said.

The Bajaj Finance share price reacted sharply to these asset-quality pressures even as earnings grew strongly year-on-year.

Company (Financial) Details – Q1FY26 vs Q1FY25

Profitability

• Consolidated net profit: ₹4,765 crore, +22% (vs ₹3,912 crore)

Income

• Consolidated revenue: ₹19,524 crore, +21% (vs ₹16,100 crore)
• Net interest income (NII): ₹10,227 crore, +22% (vs ₹8,365 crore)
• Net total income: ₹12,610 crore, +21% (vs ₹10,418 crore)

Growth Metrics

• New loans booked: 13.49 million, +23% (vs 10.97 million)

Credit Costs / Asset Quality (qualitative)

• Credit costs were notably higher in the 2W/3W and MSME segments.
• MSME portfolio stress has been evident since February 2025.

Note: The company indicated moderation in these stressed segments from Q2 onwards in the reference report. As per your guidelines, we’re not carrying forward any expectations.

Summary

The Bajaj Finance share price dropped 6% to ₹901.8 as investors focused on rising credit costs and MSME stress, overshadowing a 22% jump in net profit and 21% revenue growth in Q1FY26. With new loans up 23% and NII up 22%, the operating momentum stayed robust, but asset-quality concerns in select segments weighed on sentiment and the Bajaj Finance share price in today’s trade.